When both supply and demand decrease,the equilibrium price ________ and equilibrium quantity ________.

Question

Quizplus · Accepted Answer

When both supply and demand decrease, the effect on equilibrium price is indeterminate because the decrease in supply tends to increase price, while the decrease in demand tends to decrease price. However, the equilibrium quantity will definitely decrease because both the decrease in supply and demand lead to a lower quantity being traded.

When Both Supply and Demand Decrease,the Equilibrium Price ________ and Equilibrium